4150 Power Inn Road & 7941 Amador Avenue Industrial FOR SALE


Sacramento, CA - Colonial Village North
$1,645,000 USD
916-505-0524
, Sacramento, CA for Sale
$1,645,000 USD
Industrial - FOR SALE
1/4
null | 6.2% Cap Rate

4150 Power Inn Road & 7941 Amador Avenue
Sacramento, CA
Colonial Village North


HIGHLIGHTS

  • Acquisition opportunity at a deep discount to replacement cost
  • Buildings have been owned by the same family since they were built
  • Leases in place are priced either well below market or have net characteristics that have not been historically enforced
  • The Power Inn Corridor is one of the most popular in Sacramento because of its central location and diverse mixture of industrial, office and retail
  • Located minutes from U.S. Highway 50, Interstates 80 and 5, and Sacramento’s Central Business District
  • Immediately south of some of Sacramento’s best executive housing and retail

OVERVIEW

CBRE, Inc. is pleased to present an outstanding opportunity to acquire two fully leased light industrial buildings in Sacramento’s centrally-located Power Inn Corridor. Rents in place are well below market in an environment where the vacancy rate for Class A and B light industrial is only 2.6%, Class A availability is the same and Class B availability is a mere 5.2%. These figures and a complete absence of new construction of this highly-desirable inventory suggests an entirely plausible path forward to both higher rents and existing tenant retention. 4150 Power Inn Road is a ±9,128 sq. ft. building while 7941 Amador Avenue which sits immediately to the west and next to 4150 is ±7,305 sq. ft. in size. A total of four tenants are in place in the two properties. We estimate replacement costs for the two buildings to be $292 per square foot to $383 per square foot. (Third party replacement cost analyses are included in our due diligence site; please email broker to obtain the link.) In many instances, especially with respect to office buildings in today’s world, replacement cost is irrelevant in the absence of tenant demand. However, with respect to light industrial inventory the long term demand is real, vacancy rates are exceedingly low and new developments are warranted. Mitigating or limiting factors include the escalating costs of available, well-located land, high material and labor numbers and slow entitlement and permitting time frames. All serve to meaningfully drive up the costs of new construction, making existing projects not only more valuable but allowing more modest rents in place significant room to run as leases in place expire and become ripe for renewal.

ASK ABOUT THIS PROPERTY

Randy GetzCBRE, Inc.More Info
916-505-0524

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Randy GetzCBRE, Inc.More Info
916-505-0524

By clicking the button, you agree to Showcase's Terms of Use and Privacy Policy.